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V2657-24 27 December 2024 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · deducción por inversión en vivienda habitual

Right to tax deduction for main residence investment maintained when replacing a mortgage loan

A taxpayer inquired whether, when replacing an old mortgage with a new one from a different entity, they could continue to apply the tax deduction for investment in their main residence and deduct the expenses of the new transaction. The Directorate General for Taxes (DGT) responds that if the cancellation and the new contract are carried out in a single act, the right to the deduction is maintained and associated expenses may be included.

The question raised

Whether, after performing the restructuring operation through the cancellation and new contracting of a loan, the taxpayer will have the same right to deduct the amounts that are amortized or satisfied by it. Whether the aforementioned expenses for the new establishment of the loan are deductible.

The DGT's ruling

The substitution of one loan for another does not exhaust the possibilities of applying the deduction, provided that the new loan is intended for the amortization of the previous one. If the cancellation and the signing of the new contract occur simultaneously, the expenses generated by the cancellation of the original loan and the establishment of the new one (such as appraisal, notary, or registry fees) are deductible. However, the portion of the installments corresponding to an increase in the principal intended for purposes other than the acquisition of the dwelling shall not be eligible for deduction.

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